It's described by the UN as the third best place to live in the world and the
vagaries of economics make it more accessible than ever before to visitors
and, their inevitable corollary, émigrés.

Sigga Groa Thorarinsdottir, marketing manager of UK and Ireland for the Icelandic Tourist Board, claims that the lower value of the krona has led to interest from Britons wishing to visit and settle in the previously expensive country.

According to statistics released by the board, Iceland experienced its highest ever visitor numbers in January and February this year. In January, 4,312 Britons visited the country compared with 3,865 for the same month in 2009. In February, there was a further rise of 25.6 per cent from February 2009, with an increase to 6,116 visitors. Overall in 2009 Iceland had more than 61,619 British visitors.

Thorarinsdottir said: “Despite the economic downturn, Iceland continues to be a popular destination for British holidaymakers all year round. Iceland still has an advantageous exchange rate compared with the euro, which means there has never been a better time for people to visit Iceland with UK travellers’ spending money going a lot further.”

“2009 was a challenging year for Iceland but these figures are very encouraging.”

Iceland, which has a population of only around 323,000 people, has been in a state of economic collapse since 2008. The world recession meant that Icelandic banks, which owed around six times the country's total gross domestic product, were unable to refinance their loans. In the past year, the cost of food has risen preciptiously, while the value of the krona has fallen to record lows. Many British investors, attracted by the high interest rates offered by Icelandic banks, lost money in the collapse, and on the 6th March, Icelanders voted against a plan to repay UK and Netherlands the £3.5 billion lost by British customers when online bank Icesave crashed.

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Iceland Express airline and Icelandair have sought to take advantage of Iceland's increased traffic from the UK by making the country more accessible for travellers. Low cost airline Icelandair has increased its services from Manchester and Glasgow, and is set to begin using Birmingham as the sixth UK airport serving the capital, Reyjavik, in summer. Iceland Express has begun a service from Stansted, and there are also plans for flights to the second biggest city in Iceland, Akureyri. According to a spokesman for the Icelandic Tourist Board, Akureyri, which has 24-hour daylight from May to August, is “the ideal starting point to discover some of Iceland’s most captivating but lesser known landscapes and natural wonders”.

Iceland is currently ranked as the third most desirable country to live by the UN - after Norway and Australia - and many of its British inhabitants are keen to endorse the country’s advantages. Rhiannon Brown moved to Iceland when her fiancé Sam was offered a job by the government-run Soil Conservation Society, and says that the country “has a lot to offer for any expat. It has such a laid back atmosphere and a feeling of belonging to a community which I never felt when living in England. I have learnt that you don’t have to go through life at 100mph and it's okay to be relaxed about things.

“Although I have met few other English people here, most people speak perfect English so my fiancé and I don’t feel excluded. As far as I am concerned, the only bad thing about living in Iceland, for me, is driving in the snow. It terrifies me!”

David Jarron, a marketing manager originally from Scotland, is another expat who has settled happily in the country: “I moved here from Scotland in March 2001 with my Icelandic wife and our two boys, then four and two years old. The weather and the language were initially difficult, and I did not see myself staying very long. However, the place has completely won me over - the optimism of the people, the “can do” attitude of everyone I meet under any circumstance, and the overwhelming sense of safety, security and trust that I feel for myself and my family here.

“Importantly for me as an expat who arrived with no job, there was an obvious willingness to help others. I was offered a job by the ex boyfriend of a friend of my wife´s the day after I arrived. In Iceland, everyone is listed in the phone book by first name, and the society is wonderfully classless. I’ve seen the president swimming in my pool, and Björk in a a small local restaurant. ”

The economic crisis has, however, had an impact on expats. Rhiannon says that though the crash has not affected her directly “a lot of my friends have been hard hit by it as they took out mortgages in forgeign currencies, and then the exchange rate crashed. Now they are paying up to three times more than what they used to. The exchange rate for GBP is, however, good and has encouraged a lot of people to come here for a holiday which has helped the economy very much.”

David too has noticed problems amongst the expat community: “For those of us who like to see our families regularly, the expensiveness of plane travel is causing a problem, as we are unable to fly back as often.” He is keen to add, however that these material difficulties “are more than outweighed by living in a big community that is trying to look after each other. Anyone who wants to move at little expense could do a lot worse".

Iceland's economic problems were a key factor in the country's application for EU status in 2009, which, if successful, will see the krona replaced with the euro. European Commission support for the beginning of accession negotiations was announced in February 2010, and the government aims to achieve membership by 2012.